The Real Interest Rate Is

question 61

Multiple Choice

The real interest rate is

• A)equal to the rate of inflation minus the nominal rate of interest.
• B)the market interest rate.
• C)equal to the nominal rate of interest minus the rate of inflation.
• D)less important for decision making than the nominal rate of interest.
• E)always equal to the pure rate of time preference.

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Definitions:

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The ability to understand and share the feelings of another person, putting oneself in their shoes.

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